The Government discussed the problems and prospects of the building materials industry in the context of external sanctions

In Moscow, in the House of the Government of the Russian Federation, on March 31, a meeting was held with the Deputy Prime Minister of the Russian Federation, Yuri Ivanovich Borisov, with the participation of representatives of the industry and industry regulators.

Topical issues in the current conditions were discussed.

The problem of curbing the rise in prices for building materials was highlighted in particular. The priority of soft regulation is indicated by creating self-limitation mechanisms and the prospects for introducing a progressive income tax scale for all participants in the construction industry market.

A decrease in prices for building materials was noted for a number of items due to the work of the Federal Antimonopoly Service in response to requests from the Ministry of Construction.

The meeting participants discussed the work to improve the technical regulation of the industry, which is carried out in close conjunction with representatives of industry associations.

Further, the meeting participants were able to discuss the state and prospects for the development of most sub-sectors of the building materials industry, similarities and differences in issues. Previous responses to the current situation in the industry were noted:

- Federal Law No. 71-FZ of March 26, 2022 (hereinafter referred to as Law No. 71-FZ) "On Amendments to Certain Legislative Acts of the Russian Federation" provides for a 3-month transitional period for borrowers who do not have the status of an SME entity to increase the interest rates on loans with the so-called. "floating" rate: in the first month of the transition period 12.5% per annum; in the second month 13.5%; in the third month 16.5%;

- Decree of the Government of the Russian Federation dated March 6, 2022 No. 296 “On Amendments to the Rules for Selecting Organizations Included in Sectoral Lists of Systemically Important Organizations of the Russian Economy Applying for State Support Measures in 2020” renews targeted support measures for systemically important organizations, operating in 2020 as part of a comprehensive package of measures to support amid external sanctions, simplifies access to state support;

- Decree of the Government of the Russian Federation of March 17, 2022 N 393 "On approval of the Rules for the provision of subsidies from the federal budget to Russian credit organizations to compensate for their shortfall in income on loans issued to systemically important organizations of industry and trade and organizations that are part of a group of persons of a systemically important organization of industry and trade "approved new rules for granting subsidies on loans to replenish working capital for systemically important organizations;

- until 03/31/2022, the acceptance of proposals for the formation of a list of modern technologies was opened, on the basis of which a competitive selection was carried out for the right to receive a subsidy to finance the costs of R&D on modern technologies related to the production and sale of competitive industrial products (Government Decree dated 12/12/2019 city No. 1649);

- Decree of the Government of the Russian Federation of March 16, 2022 N 377 "On support for Russian organizations and individual entrepreneurs, most affected by the introduction of restrictive measures by foreign states, which were granted subsidies as part of the implementation of the national project "International Cooperation and Export" in case of impossibility to achieve results/indicators on time due to circumstances beyond the control of the recipient of the subsidy in connection with the imposition of sanctions, it allowed the change of such values and (or) the extension of the terms for their achievement up to 24 months without the return of the subsidy and the application of penalties against the recipient of the subsidy;

- Decree of the Government of the Russian Federation of March 12, 2022 No. No. 353 "On the peculiarities of permitting activities in the Russian Federation in 2022", the validity of all documents, including the features of permitting regimes in the field of subsoil use, assessment of compliance with mandatory requirements is extended for up to 2 years;

- On March 30, 2022, the Central Bank, in a letter to credit institutions on the list, recommended bringing the exchange rate closer to the exchange rate for legal entities - importers and those who have foreign exchange obligations. The recommendation period has not been set. For importers, special conditions are defined with a spread of no more than 2 rubles from the exchange rate (for other categories of buyers of currency, it is proposed to set spreads of at least 10 rubles to the exchange).

During the discussion, information was given on new delivery routes using rail and maritime infrastructure, which aroused great interest among the industry in connection with the search and optimization of export and import routes.

The problem of assigning manufacturers of building and finishing ceramics to category I in terms of environmental impact was identified; the problem of replacing raw materials for the production of sanitary ceramics (significantly increased costs for the logistics of similar raw materials from sources previously unused by Russian ceramic factories were noted).

Summing up the meeting, Yu.I.Borisov announced promising solutions for industry support measures and took control of all comments and proposals voiced by industry representatives, the implementation of which will help overcome current difficulties and make the industry even more competitive.